Wilson launches Executive’s proposals for revised 2010-11 spending plans

Finance Minister, Sammy Wilson today launched the Executive’s draft revised spending plans for 2010-11.

Following his statement to the Assembly, Mr Wilson said: "Although the Executive has made significant progress in delivering the targets set out in the Programme for Government since the original Budget plans were set in January 2008, it also needs to be recognised that there have been significant changes in circumstances since then.

"The Executive had previously been able to accommodate such emerging pressures as part of the normal in-year monitoring of public expenditure. However, faced with the projected position for the next financial year, I took the view last summer that pro-active early intervention was prudent to ensure that public finance remained in a sustainable position."

Outlining the main pressure facing the Executive, the Minister explained: "Although there are a broad range of financial pressures facing the Executive in 2010-11, the main issue is in terms of the further deferral of water & sewerage charges for domestic customers. Whilst this will save the average household some £400 from this element of their household bills next year, it also results in a cost to the Executive of over £210million.

"In addition, there are further costs from the Civil Service Equal Pay Claim, whilst measures have been taken to provide greater scope for the Executive to respond to emerging issues during the course of the 2010-11 financial year. In overall terms, my assessment is that the Executive is faced with a net pressure of approximately £367million next year.

"In order to prepare for the future, I have also established a £26million Invest to Save Fund, which will provide support to public services in the delivery of savings, in the context of the expected further constraints in UK public sector spending in the coming years."

Setting out the Executive’s proposed approach to addressing this issue, the Minister said: "There are limited options available to the Executive in terms of the scope to raise this amount of funding. Therefore, the only realistic option was to examine the existing spending plans of local departments. The Executive was critically aware of the need to protect priority frontline services where possible. Therefore, a targeted approach has been adopted with, for example, the lowest level of savings in percentage terms for current spending proposed for the Department of Health, Social Services and Public Safety.

"I have asked all Departments to provide further details on the implications of this decision for the public services they provide by publishing this information on their respective websites and I would encourage departmental committees to work closely with the relevant Departments to scrutinise this information.

"Unfortunately, the level of savings required meant that it was simply not possible to exempt entire departments from the process, although I would expect that my Ministerial colleagues would seek to reduce the costs of bureaucracy in the first instance.

"Although there will inevitably be references to 'Budget Cuts', the fact of the matter is that most of the savings will be used to address spending pressure in other public services. Therefore, there will only be marginal change in the overall level of planned spending by departments in 2010-11 compared to the original plans in Budget 2008-11."

Referring to the next stage in the process the Minister stated: “Following the launch of the Executive’s draft proposals today, there will now be a period of consultation with the Assembly. Although I would have much preferred there to be more time for this important part of the process, final plans need to be agreed by the start of the new financial year in order to minimise the potential disruption to public services.”

Notes to editors:

1. The Review of 2010-11 Spending Plans Consultation Document can be found at the Programme for Government and Budget website.
2. Media enquiries only to DFP Communications Office on 028 9052 7278 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be return.